Ivanhoe Energy, www.ivanhoeenergy.com – has made a name for itself on the global stage as an independent heavy-oil development/production innovator, proudly announcing a major natural gas discovery in China today, with initial flow rates of 13M cubic feet per day.
Jointly making the announcement were President and COO of Ivanhoe, David Dyck, Co-Chairman of Sunwing Energy Ltd. (Ivanhoe’s China-focused subsidiary), Robert Friedland and President of Sunwing, Gerry Moench.
Dyck praised initial flow rates at the Yixin-2 well, which is situated within Sunwing’s approximately 660k-acre Zitong Block, in one of China’s oldest and most prolific gas regions, the Sichuan Province.
The Yixin-2 well, which also output at rates of 9-10M cubic feet per day over the initial 24-hour test period (the well has now been shut-in for pressure build-up), has demonstrated the strong potential of this discovery and provides a huge incentive for further work on the Zitong Block.
Yixin-2 has thusly proven access to the targeted Xu-4 Formation and, as major sector players like PetroChina and Sinopec have made significant discoveries in the Xu-2, Xu-4 and Permian formations as well via adjacent blocks, this new discovery is promising indeed.
Friedland emphasized the decade plus of hard work by some of the industry’s top minds and most experienced people, applauding everyone involved for helping to realize this well-timed discovery as China’s demand for natural gas continues to surpass supply.
Sunwing and PetroChina have technical teams currently evaluating the Yixin structure and a strategic development methodology for the Zitong Block seems a foregone conclusion.
All of this places the Company and its shareholders in an excellent position where Ivanhoe can continue to pursue its overall strategy of implementing advanced technologies to derive long-term growth.
Contractor interest held in the Petroleum Contract with PetroChina by Sunwing is 90% and the remainder is in the hands of Japan’s Mitsubishi Gas Chemical Company.
Ivanhoe is making some huge waves in China, thus reinforcing its operations in Canada, Ecuador and Mongolia.
The Company also has an powerful technology portfolio which includes game-changers like the patented HTL (Heavy-to-Light) process for upgrading heavy-oil.